Asked by Jessica Slate on Jul 03, 2024

verifed

Verified

When a company borrows money from a bank,the statement of cash flows will report a cash increase from an investing activity.

Investing Activity

Refers to buying and selling long-term assets and other investments, a key part of a company's cash flow statement.

Statement of Cash Flows

An overview presenting the collective cash revenues from a company’s operational efforts and external funding sources, together with all cash disbursements for corporate actions and investments, during a designated period.

  • Distinguish between operating, investing, and financing activities in the statement of cash flows.
verifed

Verified Answer

LC
Laura CerrosJul 09, 2024
Final Answer :
False
Explanation :
When a company borrows money from a bank, it is considered a financing activity, not an investing activity.